Asset Management
Western Banks Step Up Expansion, Ventures In China

A number of Western banks, such as Bank of New York Mellon, are ramping up their efforts to penetrate the lucrative Chinese market, according a number of media reports.
In the case of Bank of New York Mellon, it is preparing to
launch a new asset management joint venture with Chinese
brokerage firm Western Securities, pending final approval,
according to the Wall Street Journal.
BNY Mellon Western Fund Management Co, which will have an
initial funding of CNY200 million, will be 49 per cent-owned by
BNY Mellon while the remaining 51 per cent will be held by
Western Securities, the news service said.
The fund's chief executive officer,
Hu Bin, reportedly told journalists at the sidelines of a
financial event held recently in Shanghai that the JV will likely
be finalised within the first half of the year. BNY Mellon
currently has 16 offices in 12 countries in the Asia Pacific
region, two of which are in China.
Banks have been aggressively expanding in China over the past
months as the country's growth potential presents attractive
options for investors hit by the recent financial crisis.
For example, UBS, has told Bloomberg that the
increasing number of wealthy individuals and families in the
Mainland is expected to help double the country's annual private
banking revenue from the current year.
Goldman Sachs Group's local Chinese partner
Beijing Gao Hua Securities has also recently announced the
expansion of its wealth management business.
According to the latest Hurun Report, which releases a rich list
annually, there are around 825,000 individuals whose net worths
are at least 10 million yuan ($1.5 million) in China, many of
whom were barely hit by the crisis. Forbes Magazine's
2009 China Rich List also reveals that the total assets of the
country's 10 wealthiest individuals had grown over 100 per cent,
from $52 billion to an astounding $106 billion, as affluent
numbers rose from 24 in 2008 to 40 in 2009.